Cloud: Enabler or Enigma?

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1 Cloud: Enabler or Enigma? Copyright 2013 EMC Corporation. All rights reserved. 1

2 Cloud? Huge market opportunity Can t/shouldn t be ignored $14 Billion Total addressable Market by 2016 per Gartner 90% IT workloads not yet in the cloud $3 Billion Estimated AWS revenue for 2013; $6-9B by 2015 Copyright 2013 EMC Corporation. All rights reserved. 2

3 Today s presenters Vance Checketts Big technology w/strong business background & Utah economic development success story Justin Ball Small technology w/strong engineering background re cloud & open source as enablers, especially for SMB s Niel Nickolaisen IT practitioner w/broad business & tech background re alignment & decision models for IT managers & executives Copyright 2013 EMC Corporation. All rights reserved. 3

4 Cloud? Common concerns Security / privacy Reliability / durability / availability Data access / portability System integration / leveraging existing IT Vendor lock-in Copyright 2013 EMC Corporation. All rights reserved. 4

5 Cloud? Marketecture Clients Web browser, mobile apps, virtual desktops, etc. Software... as-a-service Apps like , office productivity, CRM, finance, etc. Platform... as-a-service Database, web server, tools, etc. Infrastructure... as-a-service Computing, Storage, Networking, etc. Copyright 2013 EMC Corporation. All rights reserved. 5

6 Cloud Who/where is EMC? The mountain behind the cloud; the wizard behind the curtain Clients Web browser, mobile apps, virtual desktops, etc. Software... as-a-service Apps like , office productivity, CRM, finance, etc. Platform... as-a-service Database, web server, tools, etc. Infrastructure... as-a-service Computing, Storage, Networking, etc. Copyright 2013 EMC Corporation. All rights reserved. 6

7 BILLIONS OF USERS MILLIONS OF APPS Mobile Cloud Big Data Social Mobile Devices HUNDREDS OF MILLIONS OF USERS TENS OF THOUSANDS OF APPS LAN/Internet Client/Server PC MILLIONS OF USERS THOUSANDS OF APPS Source: IDC, 2012 Mainframe, Mini Computer Terminals Copyright 2013 EMC Corporation. All rights reserved. 7

8 What do we all want? Lower Operational Costs Increased Revenue Reduced Risk Copyright 2013 EMC Corporation. All rights reserved. 8

9 Hybrid Cloud? Business drivers Security / privacy Reliability / durability / availability Data access / portability System integration / leveraging existing IT Vendor lock-in Copyright 2013 EMC Corporation. All rights reserved. 9

10 Big Data? Characteristics Traditional BI Big Data Source ERP, CRM, etc. Any Social, mobile, etc. Size Terabytes Petabytes Hellabytes Speed Multiple batches/day Sub-second updates Structure Relational database N/A (HDFS, etc.) System impact Slow performance b0rk3n! Copyright 2013 EMC Corporation. All rights reserved. 10

11 Economic Success for EMC & Utah Mozy acquisition ($76m) Iomega acquisition ($213m) Mozy receives multiple industry accolades Planning for EMC expansion begins Utah decision & incentive for 500 employees Incentive for 250 more employees Utah becomes a Center of Excellence for EMC Copyright 2013 EMC Corporation. All rights reserved. 11

12

13 How does cloud computing impact my business? But really, you probably don t care.

14 Maybe you care about Reducing cost Making money Reducing complexity Scaling ROI Improving customer experience Being cool

15 Or Maybe Cloud?

16 Why should I care?

17 CEO Chief Electricity Officer

18 CTO Choose the right technology Make it cheap Make it perform Build it fast Make it scale Keep it under control

19 Cheaper? Really?

20 from Amazon

21 Perform?

22 Numbers Every two minutes we take as many photos as all of humanity took during the 1800s 10% of all photos ever taken were taken in the last 12 months Twitter averages 5700 Tweets per Second but spikes to 143k Tweets per second Facebook 1.3 billion active users 48% of year old Facebook users check Facebook as soon as they awake

23 300 milliseconds

24 Ilya Grigorik ms ms ms 1 second+ 10 seconds+ Instant Slight perceptible delay Perceptible delay Mental context switch I ll come back later

25 Big data and little numbers matter

26 Fast?

27 Steve Blank A Startup isn t a company it s a hypothesis Fail fast

28 How do we fail fast? Build cheap Build fast Iterate Scale FTW

29 Monitor Twitter Flower Shop Boyfriend Jerk Process 5700 Tweets per second? By Keyword? By Location? Big data! Big money? Amazon Kinesis!

30 Scale?

31 Open Source 1991 Linus Torvalds open sources Linux Real innovation is opening of ideas Engineers start sharing code/ideas SourceForge 2008 Github launches Engineers share even faster Together we learn (still happening)

32 Cloud Computing 1950s we start sharing main frames. Post dot com Amazon builds large data centers but find it is only using 10% Amazon Introduces EC2 and S3 EMC, Google, Microsoft, Oracle, IBM offer cloud solutions Dotcloud shifts from hosting to Docker.io

33 Engineers Sharing SysOps Ideas Docker.io Doku Ember.js, Angular.js, React.js, RxJS TC39 SPDY CORS Smart CDNs Websockets WebRTC

34 Share Code => Share Load

35 Control?

36 Replicable, Programmable SysOps Puppet Chef Docker.io

37 How do I start? Cloudgineer?

38 You might be cloud enabled without even knowing it

39 Cloud Services AtTask Instructure Canvas Tynt CitizenDish Money Desktop

40 Analytics Omniture (Adobe) Domo Google Analytics Ingroove

41 Services SendGrid MailChimp MadMimi

42 Hosting Heroku Digital Ocean Amazon EC2 + S3 Google App Engine Bluehost

43 Infrastructure Services Iron.io Firebase IActionable Amazon MapReduce Amazon Kinesis ElasiticSearch MapR

44 Closing Advice Cliché Stand on the shoulders of giants Try New Things Build cool stuff

45 The Practices of Transformational Leaders

46 My belief, The biggest change to the enterprise since Al Gore invented the internet.

47 How So? Trustworthiness

48 Two Drivers Technology-driven Competition Breakneck pace, new business models, new competitors No IT Monopoly Get any IT (and other) service anywhere

49 $129M 6,000 square feet 2.5 megawatts 1,000 trillion operations per second (still top 25 super computer) By the way, IBM built this one in 2009 and replaced it in 2012 for $1.3M.

50 My World Today Analytics / Segmentation Collaboration Private and Hybrid Cloud Mobile + Everything Else (Software Dev, Ops, Legacy, Budgets, Staff, Vendors, Etc) Social

51 My World in 2-4 Years Mega Data Mind Reading Insta-Clouds Individual As Device + Everything Else (Mobile, Analytics, Social, Software Dev, Ops, Legacy, Budgets, Staff, Vendors, Etc) Privacy

52 Like I said, The biggest change to the enterprise since Al Gore invented the internet.

53 But, this disruption creates amazing opportunities Collaboration Model

54 What Do I Do? Get to continuous transformation

55 Sounds nice but how?

56 Create a Trust / Ownership Culture

57 Make great, accurate, rapid, and market-aligned decisions

58 Sounds nice but how?

59 Business Value Model Purpose Considerations Costs and Benefits

60 My Operating System: Purpose Alignment Model High Market Differentiating Partner (very rare) Differentiating (Better Than) Low Who cares Low (hopefully rare) Parity (As Well As) Mission Critical High

61 In Practice High Do we take this on? Innovate, Create Market Differentiating Low Low Minimize or Eliminate Achieve and Maintain Parity Mission Critical High

62 The Differentiating Rules Rules Always Be the Market Leader Focus Own Differentiating How? Innovate now and forever Have 1-3 specific things you do better than anyone else You cannot outsource your innovation

63 The Parity Rules Rules Fill Any Gaps Because Gaps Kill Eliminate Risks Because Risks Kill Create Capacity To Focus Resources on Innovation How? Adopt Best Practices adopt the innovation of market leaders Simplify complexity increases risks and reduces agility Standardize there is only downside to exception handling of Parity activities

64 Example Medical Device Company High Product Design Market Differentiating Low Low Everything Else Acctg, Mfg, Network, , Inventory Mgmt Mission Critical High

65 strategy = sustainable competitive advantage Sustainable Competitive advantage

66 4 important questions: 1. Who do we serve? 2. What do they want and need most? 3. What do we do better than anyone else to meet these wants and needs? 4. What is the best way to provide this?

67 the billboard test

68 Don t worry about our implants, you should see our Chart of Accounts!

69 Business Value Model Purpose Considerations

70 Collaboration Model flexibility

71 dependencies Collaboration Model

72 Time to Benefit

73 time to market

74 complexity team size mission criticality team location team capacity domain gaps dependencies knowledge technical complexity

75 uncertainty market uncertainty technical uncertainty project duration dependents

76 Business Value Model Purpose Considerations Costs and Benefits

77 Business Value Example Cloud or On-Premise? Purpose Considerations Quantifiable Costs and Benefits

78 Cloud or On-Premise Storage Purpose? Parity Costs? Add more on-premise or use cloud storage? Benefits? Equal Considerations? Staff skills, data security, area of staff focus, et cetera

79 Cloud or On-Premise Phone System Purpose? Parity Costs? Cloud costs more Benefits? Equal Considerations? Flexibility, scalability, staff allocation, technology refresh, et cetera

80 Process: Define the hard costs and benefits Brainstorm and prioritize the considerations Balance the costs, benefits and considerations

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